While Covid 19 has brought news of deaths in some senior properties, it has been good news for residents of better run facilities. The lock down, professional staff and strict safety measures in most properties may be providing safer environments for seniors than being at home.
- How will properties perform with potentially higher Covid 19 related expenses and less new tenant traffic from the lockdown of these facilities?.
- Are transactions closing?
- Will 2020 be a buyer or sellers’ market?
WATCH VIDEO: Senior housing Broker Ernie Anaya joins host Michael Bull for a look at the current market and the future of senior housing in United States.
Here is a commentary from Mr. Weston Harmer, Sr. Project Manager of Diamond Living Estates, LLC,
La Costa Living Estates, LLC and Carmel Pacific Living Estates, LLC.
Covid 19 is testing us all; and as history has taught us, humans are resilient. When tested they have risen to the occasion. So goes the Senior Housing Industry. Like other industries, seniors housing is being pushed to rise to the occasion. Despite the few head-lining articles from a couple months back, the industry is responding with responsibility and enhanced care. Operators are increasing staff, creating more social distance, sanitizing all incoming products and offering more preventive care; everything We Strategic felt should be offered prior to Covid 19. We Strategic’s mission has been to provide the highest level of care with hopes that other Operators will follow.
As our Memorandum’s have always stated “this marks the beginning of a new philosophy in respect to the treatment and value we give to our seniors”. If Covid 19 has silver linings, this will certainly be one.
From an investment stand point, Seniors Housing market principles remain strong and show signs of improving even more. Both commercial and retail sectors are taking a big hit and investors are now looking, more than ever, at seniors housing. We Strategic has received more inquiries from investors over the past two weeks than ever before. Despite the expected decrease in new residents; occupancies have remained high. A post-pandemic spike in occupancy is popularly predicted amongst the industry and will help those senior communities who have risen to the occasion. Cap rates continue to improve and future inventory has been slowed. This bodes well for those with new communities underway.
Covid 19 has opened the world’s eyes to many new ways and for We Strategic, it has solidified what we already foresaw. Higher care levels, lower density offering private space, innovative and preventive care, NASA discovered bacteria and virus removal technology, etc. We look forward to the future and being part of the improved treatment and value this industry will give our seniors.
About Weston Harmer: For the past two decades, Mr. Harmer has been dedicated to real estate, striving towards developing homes and lifestyles to all generations. He has enjoyed leading successful developers, construction sales and marketing teams to increase the company’s profitability and to assist customers to create a better lifestyle and future for all.